Auto component industry skids, 1 lakh lose jobs

New Delhi, December 6 

The auto component industry’s turnover witnessed worst-ever decline in the first half of the current fiscal leading to a job loss of around 1 lakh temporary workers till July this year, industry body ACMA said today.

The turnover of the industry dropped to Rs 1.79 lakh crore in the April-September period, down 10.1% from Rs 1.99 lakh crore in the year-ago period, the Automotive Component Manufacturers Association (ACMA) said.

The industry body said the slowdown has also resulted in an investment loss of up to $2 billion during the period. Exports, however, registered a marginal growth of 2.7% to Rs 51,397 crore ($7.5 billion) during the period, while aftermarket segment grew by 4% to Rs 35,096 crore. Import of components declined by 6.7% to Rs 57,574 crore.

“The automotive industry is facing a prolonged slowdown. The vehicles sales in all segments have continued to plummet for the last one year,” ACMA president Deepak Jain said. 

On job losses, Jain said retrenchment has taken place from October last year till July 2019. — PTI 

In reverse gear

• The industry body said the slowdown has also resulted in an investment loss of up to $2 billion during April-September
• Exports, however, registered a marginal growth of 2.7% to Rs 51,397 crore ($7.5 billion) during the period, while aftermarket segment grew by 4% to Rs 35,096 crore ($5.1 billion)
• Import of components declined by 6.7% to Rs 57,574 crore